SBA loans in New Mexico: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 206 7(a) loans to buy an existing business in New Mexico, totaling $243M. The median loan was $809,750, 25% higher than the $645,250 national median for SBA-financed acquisitions. Volume fell 22% from FY2024 to FY2026.
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SBA lenders in New Mexico
The lenders that made the most SBA 7(a) acquisition loans in New Mexico, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 30 | 14.6% | $38.3M | |
| 2 | BMO Bank National Association | 10 | 4.9% | $10.3M | |
| 3 | UMB Bank, National Association | 9 | 4.4% | $2.2M | |
| 4 | United Midwest Savings Bank National Association | 8 | 3.9% | $12.6M | |
| 5 | Open Bank | 7 | 3.4% | $19.1M | |
| 6 | Wells Fargo Bank National Association | 7 | 3.4% | $4.2M | |
| 7 | DreamSpring | 7 | 3.4% | $974K | |
| 8 | First Financial Bank | 5 | 2.4% | $6.7M | |
| 9 | Century Bank | 5 | 2.4% | $4.7M | |
| 10 | TowneBank | 5 | 2.4% | $4.6M |
What this tells a buyer
- Deal size band. Half of New Mexico acquisition loans fell between $350,000 and $1,569,775. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. New Mexico accounts for 0.4% of all SBA acquisition loans and ranks number 41 of 54 states and territories by count.
- Industry concentration. Hotels (except Casino Hotels) and Motels is the most financed business type here (25 loans, 12% of the state). The top three industries together are 18%.
- Lender concentration. Live Oak Banking Company made 15% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 15% of acquisition loans in New Mexico involved a franchised brand; the most frequent is Best Western (3 loans).
New Mexico acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 11 | $10.5M | $802,800 | |
| FY2019 | 25 | $16M | $500,000 | |
| FY2020 | 18 | $12.9M | $565,000 | |
| FY2021 | 28 | $30.2M | $860,000 | |
| FY2022 | 20 | $23.4M | $731,900 | |
| FY2023 | 22 | $30.6M | $1,254,950 | |
| FY2024 | 18 | $23.3M | $884,350 | |
| FY2025 | 50 | $75.3M | $1,185,000 | |
| FY2026 | 14 | $21.1M | $966,500 |
How often do these acquisition loans fail?
Of the 82 New Mexico acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 3.7% by loan count and 0.7% by dollars. 36 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so New Mexico is in line with the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Top industries in New Mexico
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 25 | 12.1% | $55.7M | |
| 2 | Full-Service Restaurants | 7 | 3.4% | $5.3M | |
| 3 | Offices of Dentists | 6 | 2.9% | $8M | |
| 4 | Engineering Services | 6 | 2.9% | $7.8M | |
| 5 | Limited-Service Restaurants | 6 | 2.9% | $4.7M | |
| 6 | Snack and Nonalcoholic Beverage Bars | 6 | 2.9% | $1.3M | |
| 7 | Offices of Certified Public Accountants | 5 | 2.4% | $2.9M | |
| 8 | General Automotive Repair | 5 | 2.4% | $2.6M | |
| 9 | Sign Manufacturing | 4 | 1.9% | $3.6M | |
| 10 | Other Building Material Dealers | 4 | 1.9% | $2.4M |
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Franchise brands bought in New Mexico
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Best Western | 3 | 1.5% | $10M | |
| 2 | Big O Tires | 3 | 1.5% | $3.3M | |
| 3 | FASTSIGNS | 2 | 1.0% | $815K | |
| 4 | Studio 6 | 1 | 0.5% | $5M | |
| 5 | Hampton Inn | 1 | 0.5% | $5M | |
| 6 | Hampton Inn & Suites | 1 | 0.5% | $5M | |
| 7 | SureStay | 1 | 0.5% | $4.2M | |
| 8 | Quality Inn | 1 | 0.5% | $3M | |
| 9 | Motel 6 | 1 | 0.5% | $2.8M | |
| 10 | Days Inn | 1 | 0.5% | $2.6M | |
| 11 | Massage Envy | 1 | 0.5% | $2.1M | |
| 12 | Wild Birds Unlimited | 1 | 0.5% | $1.6M | |
| 13 | Travelodge | 1 | 0.5% | $1.5M | |
| 14 | Anytime Fitness | 1 | 0.5% | $1.1M | |
| 15 | Cinnabon | 1 | 0.5% | $700K |
Acquisitions by industry in New Mexico
The 1 industry with the most acquisition loans in New Mexico (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
| Industry | Loans | Median loan | Charge-off |
|---|---|---|---|
| Hotels and Motels | 25 | $1,583,000 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in New Mexico?
The median SBA 7(a) acquisition loan in New Mexico was $809,750 across 206 loans (FY2018 to FY2026), 25% higher than the $645,250 national median. The middle half of loans ran from $350,000 to $1,569,775. A loan is not the purchase price: it is net of the buyer's equity injection and usually includes some working capital.
Which banks make the most SBA acquisition loans in New Mexico?
Live Oak Banking Company (30), BMO Bank National Association (10), UMB Bank, National Association (9), United Midwest Savings Bank National Association (8), Open Bank (7). Live Oak Banking Company alone accounts for 15% of New Mexico acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in New Mexico?
Hotels (except Casino Hotels) and Motels (25), Full-Service Restaurants (7), Offices of Dentists (6), Engineering Services (6), Limited-Service Restaurants (6). The top three industries make up 18% of the state's acquisition loans.
How often do SBA acquisition loans fail in New Mexico?
In the seasoned cohort (FY2018 to FY2021), among 82 New Mexico acquisition loans: 3.7% charged off, in line with the 3.5% national acquisition average.
How does New Mexico compare with other states?
New Mexico ranks number 41 of 54 states and territories by acquisition loan count, with 0.4% of national volume (206 of 48,902 loans) and $243M approved. Browse the full state ranking.
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Related
- Hotels (except Casino Hotels) and Motels nationally
- Full-Service Restaurants nationally
- Offices of Dentists nationally
- Live Oak Banking Company
- BMO Bank National Association
- UMB Bank, National Association
- All states
- Buyer's guide to the data
State is the project state recorded by the lender (where the acquired business operates), not the borrower's mailing state.